Daniel Chan: The Breakthrough Of Traditional Retail Practice

The 2014 is a good harvest year for e-commerce.

This year, Alibaba and Jingdong have been listed in the United States; the total turnover of "double eleven" Tmall has exceeded 57 billion; by the end of the three quarter of 2014, the size of China's electricity supplier market reached 2 trillion and 950 billion, up 17.7% over the same period last year.

Correspondingly, the path of traditional retail industry is quite difficult: in the first three quarters, the growth rate of retail sales of social consumer goods was only 12.04%, reaching a new low in the past 5 years.

"Actually, we witnessed the ups and downs of China's retail market in the past year, but I don't think the economic situation is bad or the electricity supplier is too strong, but the traditional department stores are too weak. China's retail industry still has huge room for development."

Facing the unprecedented consumption revolution, Yintai business group CEO

That is to say.

Also this year, with the traditional business tycoons such as Yintai department store and Wanda Department store as representatives, the breakout and pformation of China's retail industry are taking place.

Adjust the way of thinking, adjust the way of operation, adjust the layout of the format.

This year, for the retail industry, opportunities and crises coexist. Gains and losses coexist, development and disappearance coexist, joy and anxiety coexist.

So, what is the performance of Daniel Chan and his team in the complex business situation this year? How do they know about the increasingly fierce competition in 2015? The Zhejiang online reporter interviewed CEO Daniel Chan of Yintai business group in this new phase of 2014 Zhejiang enterprises.

Electricity providers are eating away from the retail market.

From 2003 to 2013, China's retail industry has gone through the golden period of ten years.

Data show that in the four fastest developing years, the average number of stores in the chain stores above designated size increased by an average of 35.1%.

Industry observers believe that the retail industry is the beneficiary of China's economic reform and opening up. It enjoys three dividends: the dividend brought by the rapid economic growth, the dividends brought by China's urbanization and the demographic dividend brought by the huge population base of China.

Today, dividends have been exhausted.

On the one hand, it seems that the successful experience that retail companies have made before is hard to work. On the other hand, the rapid development of e-commerce has become a nightmare for many traditional department stores.

According to statistics, in 2013,

The total number of Listed Companies in 38 department stores totaled 431 billion 515 million yuan, and realized a net profit of 10 billion 892 million yuan.

The "double eleven" one day only Tmall and Taobao platform created a paction volume of 35 billion 19 million yuan, when Alibaba realized a net profit of 3 billion 562 million dollars, equivalent to two times the total net profit of the listed companies.

By 2014,

Once again, the successful listing has created an unprecedented sensation. With the increasing volume of e-commerce, many people worry that the traditional retail industry will be further eroded in the future.

Taking Yintai as an example, according to the company's semi annual report, the total sales revenue of Yintai business group in 1-6 months is 7 billion 917 million yuan, up 1.7% from the same period last year. The group's same store sales (which mean the sales of mature shops for at least one year) fell by 2.4% on average, and the profit of the parent company was 507 million yuan, down 30.7% from the 732 million yuan recorded in the same period last year.

It seems that everything is explaining the decline of traditional business.

But Daniel Chan didn't look at it this way.

"Actually, we witnessed the ups and downs of China's retail market in the past year, but I don't think the economic situation is bad or the electricity supplier is too strong, but the traditional department stores are too weak. China's retail industry still has huge room for development."

What he said is not without reason.

The implementation of the national economic restructuring strategy will focus on expanding domestic demand, especially consumer spending. CICC's research report believes that the consumer sector is still promising.

So, "practicing a unique martial arts" has become a problem before all retailers.

"We are the fastest growing industry online. At least in this industry, it is innovation and pformation, the most thinking and action.

It may be hard to say what success is, but at least you start to do it. "

Daniel Chan told reporters, "our idea is to do first.

In 2013, "double eleven" cooperated with Tmall and Taobao, and others felt that "your brain is not flooded," but the final result was our cooperation with Alibaba at the beginning of the year.

Daniel Chan's ideas are very pragmatic.

It's no use standing there without talking.

Standing on the spot will never reach the finish line. You must go forward with your legs. "